Extension of Period of Interest Subvention (IS) and Prompt Repayment Incentive (PRI) : A Big Relief for Farmers of Short Term Crop Loans during the years 2018-19 & 2019-20
In the wake of the nationwide lockdown due to outbreak of Covid -19 pandemic and
the resultant restrictions imposed on movement of people due to Lock down , many farmers are not able to travel to bank branches for payment of their short term crop loan dues.
As per RBI circular dated March 27, 2020 regarding Covid 19-Regulatory Package, moratorium has been granted for three months on payment of installments falling due between March 1, 2020 and May 31, 2020 in respect of all term loans including short term crop loans.
Therefore to ensure that farmers do not have to pay penal interest and continue getting the benefits of interest subvention scheme, Government has decided to continue the availability of 2% IS and 3% PRI to farmers for the extended period of repayment upto 31.05.2020 or date of repayment, whichever is earlier, for short term crop loans upto ₹3 lakh per farmer which have become due between March 01, 2020 and May 31, 2020.
Banks are accordingly advised to extend the benefit of IS of 2% and PRI of 3% for short term crop loans upto ₹3 lakh to farmers whose accounts have become due or shall become due between March 1, 2020 and May 31, 2020.
All other terms and conditions remained unchanged.